No, even if the seller’s death postpones performance, a buyer cannot enforce a property sale agreement if the lawsuit is filed after the statute of limitations.
The weight of time caused a man’s dream of owning land in Rawalpindi to crumble. Years of waiting and his faith in verbal assurances resulted in a legal battle that went all the way to the Supreme Court of Pakistan in 2022, where it ended in heartache.
There was hope for the summer of 2001. A buyer thought that by signing a contract to buy a piece of land, he would secure his future. After all payments were made, the seller promised to transfer the property by June 30, 2002. The buyer envisioned security, stability, and a home.
However, destiny stepped in. Before the sale was completed, the seller passed away in 2002. He was replaced by his heirs, a family consisting of adults and children. Once a guardianship certificate (a court-issued authorization to act on behalf of minors) was obtained, they promised the buyer that they would uphold the agreement.
He had faith in them. He waited. However, years passed. The truth was revealed in 2011, almost ten years later: the family had changed their mind about selling. Rather, they claimed the agreement had long since expired and demanded the return of the land.
The purchaser appeared in court. He brought a lawsuit seeking specific performance, which is a legal remedy in which a judge orders the fulfillment of a contract instead of granting damages. Insisting that the land belonged to them, the seller’s family simultaneously filed their own suit for possession.
The trial court reviewed the evidence after combining the cases.
The buyer presented the 2001 contract, which had a June 30, 2002, due date.
He maintained that the contract was extended by the family’s verbal promises, a practice known as novation (the process of replacing an old contract with a new one in accordance with Section 62 of the Contract Act, 1872).
By pointing out that the buyer’s lawsuit was filed in 2011, almost nine years too late, the family refuted any such promises.
The buyer lost the case in the trial court. According to Article 113 of the Limitation Act of 1908, which stipulates that a suit for specific performance may only be filed for three years from the date set for performance, his suit was time-barred. The suit for possession filed by the family was granted.
In 2017, the decision was upheld by the appellate court. The buyer then appealed to the Lahore High Court, claiming that the family’s assurances had resulted in a new contract that started over. However, the High Court rejected his plea in 2019
The Supreme Court of Pakistan was the buyer’s last resort.
The legal question was straightforward: 👉 Could a buyer use verbal promises to enforce a property sale agreement years after the seller’s passing, when the lawsuit was filed after the statute of limitations?
The Supreme Court looked at fairness and the law.
According to Article 113 of the Limitation Act of 1908, the three-year clock begins on the date of performance specified in the contract, not when the refusal becomes apparent later. That meant the buyer had until 2005 to submit his application. It was too late to file in 2011.
A clear and verifiable new agreement is required for novation under Section 62 of the Contract Act of 1872. The buyer only had verbal claims, which the family denied, and no written evidence. The court was unable to find novation in the absence of evidence.
Property law and minors: Under Order XXXII Rule 3 CPC (Civil Procedure Code), any new agreement would have needed a guardianship certificate and appropriate court proceedings because the seller’s heirs included minors. That legal path was not followed by the buyer.
The buyer could have filed a lawsuit sooner, naming the heirs and asking for a guardian for the minors, the Supreme Court pointed out. He demonstrated a lack of vigilance by failing to act promptly. His delay proved to be fatal, and limitation laws are in place to prevent stale claims.
The Supreme Court ruled that the buyer’s suit was time-barred on April 11, 2022, and dismissed his petitions. The family’s claim to the land was maintained.
It was a devastating loss for the buyer. He had thought that patience and trust would sustain his dream. Rather, the law penalized his tardiness. A chapter of conflict was ended when the family reclaimed their property.
This case serves as a clear warning to others:
In real estate transactions, don’t depend on verbal promises.
Take action before the statute of limitations expires.
Observe the correct guardianship protocols when dealing with minors.
Time is a silent judge in the field of property law, and waiting too long can have disastrous consequences.
This narrative is based on an actual ruling rendered by Pakistan’s Supreme Court in 2022.
FAQs
If the lawsuit is filed after the seller’s passing, can the buyer still enforce the terms of the property sale agreement?
No. According to a 2022 Supreme Court decision, buyers cannot enforce such agreements if they are filed after the three-year statute of limitations stipulated in Article 113 of the Limitation Act, 1908.
For a particular performance, what is a suit?
Instead of only granting damages, the buyer requests that the court compel the seller (or their heirs) to uphold the terms of the sale agreement.
How long does it take to enforce a property sale agreement in Pakistan?
A buyer has three years from the agreed-upon performance date or refusal to file under Article 113 of the Limitation Act, 1908.
In contract law, what is novation?
According to Section 62 of the Contract Act of 1872, novation is the process of replacing an outdated contract with a new one. Verbal promises alone are insufficient; there must be a clear and verifiable agreement.
Can a property sale agreement be extended by verbal promises?
No. Verbal promises are insufficient to overcome statutes of limitations or establish novation in the absence of written documentation or appropriate legal authorization.
What happens if a property sale agreement includes minors?
In accordance with Order XXXII Rule 3 CPC, the buyer must designate a court-appointed guardian and obtain a guardianship certificate. The contract cannot be enforced without this.
Disclaimer
This blog is not legal advice; it is merely for public awareness.
